US Solana ETF Hinges On Regulatory “Soft Fork”: VanEck Exec

As a seasoned crypto investor with over two decades of experience in the financial markets, I’ve witnessed numerous regulatory battles and shifts. The recent news about Brazil approving spot Solana ETF products has left me both impressed and dismayed.


 

Matthew Sigel, head of research at VanEck, reacted to the recent approval of Solana ETF products in Brazil by stating his strong belief that U.S. regulators are prioritizing less significant issues, resulting in Brazil surpassing the U.S. in this area.

Brazil Beats the US to Spot Solana ETF Approval

On Wednesday, it was announced that Brazil had given approval for a Solana-focused ETF, making them the first country to do so with this type of offering.

The decision by Brazil’s regulator to allow the SOL ETF to move forward has sparked speculation among experts that similar approval may be granted in the United States for pending applications. However, Sigel expressed his embarrassment that Brazil approved this offering before the U.S., implying that the U.S. Securities and Exchange Commission (SEC) appears to prioritize cracking down on cryptocurrency initiatives over supporting them.

According to Sigel’s post on X, this administrator is successfully suing Big Tech companies over antitrust issues, yet they seem unwilling to foster the growth of open-source alternatives.

VanEck’s Executive expresses doubt that prioritizing “customer welfare” alone justifies the regulator’s delay in approving spot ETFs within the region. It is worth mentioning that VanEck submitted an application to list a SOL ETF more than a month ago, and 21Shares made their application shortly thereafter, but neither has received approval as of yet.

According to Sigel’s perspective, the digital asset sector is optimistic about the possibility of a pro-cryptocurrency administration as perceived by current SEC standards. He suggests that the regulatory environment in the U.S. could benefit from a more accommodating approach, akin to a “soft fork” in blockchain terminology. Sigel believes that the White House holds the key to implementing this change.

US SEC Crypto Stance is Likely to Change

Regardless of appealing to crypto voters ahead of elections, the Securities and Exchange Commission (SEC) might soon endorse Solana ETFs. Moreover, their decision to approve spot Bitcoin ETFs in January and later Ethereum ETFs in June indicates a significant shift in the SEC’s stance towards cryptocurrencies. It seems that the SEC may be adopting a more favorable approach towards digital currencies.

Lately, the Commission has opted not to classify Solana, Cardano, and Polygon as securities in the Binance lawsuit. This move seems to indicate a progression toward a more supportive stance for the cryptocurrency sector.

As an analyst, I find myself acknowledging that the Securities and Exchange Commission (SEC) has additional matters to address in the digital asset sector. Notably, executives from VanEck and Coinbase have voiced concerns about the U.S. SEC’s approach towards spot Bitcoin Exchange-Traded Funds (ETFs). These industry leaders emphasized that the current regulatory framework has led to elevated borrowing costs as a byproduct of their implementation.

 

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2024-08-09 23:28